Issue - meetings


Remuneration of Directors on Council Controlled Companies and the Council's Role as Shareholder

Meeting: 18/07/2016 - Executive (Item 38)

Cherwell's Approach to Working with Council Controlled/Influenced Companies

** Please note that this report will follow as it is currently being reviewed **

 

Exempt Report of Chief Finance Officer

Additional documents:

Decision:

Resolved

 

(1)          That the Terms of Reference for the Shareholder Committee, a sub-committee of the Executive, (annex to the Minutes as set out in the Minute Book) to replace the Graven Hill Partnering Board be agreed.

 

(2)          That the Leader, Lead Member for Financial Management and Lead Member for Housing be appointed to the Shareholder Committee.

 

(3)          That the functioning and effectiveness of Graven Hill Village Holding Company be further developed through the secondment of an officer from the council to act as Managing Director and that the Head of Paid Service (or their appointed deputy if they are a non-executive director of a Council controlled/influenced company) be given delegated authority to implement this.

 

(4)          That the Head of Law and Governance be requested to commission the preparation and completion of Shareholder agreements between the Council and the Graven Hill Village Holding Company and, jointly with this company, between it and the Graven Hill Village Development Company with the terms of such agreements being reported to the Shareholder Committee.

 

(5)          That the framework within which the Council will work with Council owned companies as set out in the exempt report (exempt Annex to the Minutes as set out in the Minute Book) be agreed and the Chief Finance Officer (as shareholder representative), in consultation with the Shareholder Committee, be given delegated authority to implement and negotiate this framework.

 

(6)          That the principle that non-executive directors and Chairmen of Council owned/influenced companies be remunerated be agreed and that in the case of Councillor and Council Officer nominated non-executive directors this should be set and paid by the Council, with the company reimbursing the Council for their time through a management recharge.

 

(7)          That it be agreed that the Independent Remuneration Panel (IRP) be requested to consider the level of special responsibility allowance that the Council should pay Councillors who are non-executive directors and/or Chairmen of councillor owned/influenced companies on a company by company basis commencing with the Graven Hill companies and that Council be requested to make a decision on their recommendations in due course.

 

(8)          That it be agreed that the Head of Paid Service (or their appointed deputy if they are a Director of a Council controlled/influenced company) be requested to arrange for the evaluation of the non-executive director and Chairman roles in order to set the level  of remuneration that the Council should pay Officers who are non-executive directors or Chairmen of Council owned/influenced companies and that the Head of Paid Service (or their appointed deputy if they are non-executive director) in consultation with members of the Shareholder Committee be requested to make a decision on this in due course and further that such appointments shall be made in addition, and not linked, to appointees’ substantive posts.

 

(9)          That it be agreed that the level of remuneration for any Independent Non-Executive Directors who may be appointed to Council controlled/influenced companies is a matter for the Board of Directors of the relevant company to evaluate and propose to the  ...  view the full decision text for item 38

Minutes:

The Chief Finance Officer submitted an exempt report to consider the way that the Council works with Council owned/influenced companies (currently Graven Hill) and to put in place efficient and effective means of communication, monitoring, evaluation and liaison to ensure the Council safeguards its investments and maximises the return to the Council and community. To consider and approve the principle of member and officer non-executive directors of these and other Council owned/influenced companies being remunerated and to agree the approach to implementing this.

 

Resolved

 

(1)          That the Terms of Reference for the Shareholder Committee, a sub-committee of the Executive, (annex to the Minutes as set out in the Minute Book) to replace the Graven Hill Partnering Board be agreed.

 

(2)          That the Leader, Lead Member for Financial Management and Lead Member for Housing be appointed to the Shareholder Committee.

 

(3)          That the functioning and effectiveness of Graven Hill Village Holding Company be further developed through the secondment of an officer from the council to act as Managing Director and that the Head of Paid Service (or their appointed deputy if they are a non-executive director of a Council controlled/influenced company) be given delegated authority to implement this.

 

(4)          That the Head of Law and Governance be requested to commission the preparation and completion of Shareholder agreements between the Council and the Graven Hill Village Holding Company and, jointly with this company, between it and the Graven Hill Village Development Company with the terms of such agreements being reported to the Shareholder Committee.

 

(5)          That the framework within which the Council will work with Council owned companies as set out in the exempt report (exempt Annex to the Minutes as set out in the Minute Book) be agreed and the Chief Finance Officer (as shareholder representative), in consultation with the Shareholder Committee, be given delegated authority to implement and negotiate this framework.

 

(6)          That the principle that non-executive directors and Chairmen of Council owned/influenced companies be remunerated be agreed and that in the case of Councillor and Council Officer nominated non-executive directors this should be set and paid by the Council, with the company reimbursing the Council for their time through a management recharge.

 

(7)          That it be agreed that the Independent Remuneration Panel (IRP) be requested to consider the level of special responsibility allowance that the Council should pay Councillors who are non-executive directors and/or Chairmen of councillor owned/influenced companies on a company by company basis commencing with the Graven Hill companies and that Council be requested to make a decision on their recommendations in due course.

 

(8)          That it be agreed that the Head of Paid Service (or their appointed deputy if they are a Director of a Council controlled/influenced company) be requested to arrange for the evaluation of the non-executive director and Chairman roles in order to set the level  of remuneration that the Council should pay Officers who are non-executive directors or Chairmen of Council owned/influenced companies and that the Head of Paid Service (or their appointed  ...  view the full minutes text for item 38